## In the Trenches: Policymaker and Negotiator ## Source details **Canonical URL:** [In the Trenches: Policymaker and Negotiator](https://www.imf.org/en/publications/fandd/issues/2023/06/trenches-policymaker-and-negotiator-yoo-myung-hee) ## Other formats - [Markdown version](/en/publications/fandd/issues/2023/06/trenches-policymaker-and-negotiator-yoo-myung-hee/index.md) - [Structured JSON version](/en/publications/fandd/issues/2023/06/trenches-policymaker-and-negotiator-yoo-myung-hee/index.json) - [Bundle manifest](/en/publications/fandd/issues/2023/06/trenches-policymaker-and-negotiator-yoo-myung-hee/bundle-manifest.json) ## Bibliographic details - Authors: Jeff Kearns - Published: June 1, 2023 --- ### Background and Korea’s rise through trade - Yoo Myung-hee was born in 1967, the year South Korea acceded to the General Agreement on Tariffs and Trade. - Began her career in the Ministry of Trade, Industry, and Energy in 1995, when GATT was succeeded by the WTO. - Korea’s transformation from poverty and war to global trade leader is attributed by Yoo to open trade. - Yoo served as Korea’s first female trade minister from 2019 to 2021 and was a final-round candidate for WTO director-general before yielding to Ngozi Okonjo-Iweala. - Nearly three decades in government included negotiating the Regional Comprehensive Economic Partnership and bilateral trade pacts with China and the United States. - Educational background: Vanderbilt University Law School and Seoul National University; visiting professor at the Graduate School of International Studies. ### Negotiation approach and domestic consultation - Emphasis on sufficient preparation and domestic consultation: - Know the substance through thorough analysis. - Engage in extensive consultations with domestic stakeholders and relevant agencies to explore alternatives, identify landing zones, and fine-tune redlines. - These efforts increase likelihood of smooth ratification and implementation, though they require significant time and effort. - Practical example with Korea-US renegotiations: - A public hearing—required to launch FTA negotiations in Korea—was suspended due to a significant protest by agricultural stakeholders. - Yoo met multiple times with protesters, explained issues, and secured support to resume the public hearing. - The process helped conclude negotiations and secure ratification from the National Assembly within a year. ### Experience engaging with China - Served as counselor in Beijing from 2007 to 2010. - Observed China’s earlier active engagement and market opening, including concluding an FTA with New Zealand in 2008—China’s first comprehensive FTA and first with an advanced country. - Contributed to the Korea-China FTA Joint Study and worked to expand trade and investment with China. - Noted a subsequent shift in China’s policy and the changing economic trade landscape. ### COVID-19, supply disruptions, and trade adaptation - The pandemic accelerated a shift toward a more security-oriented approach in trade governance, emphasizing resilience, stability, and reliability in supply chains. - Despite COVID-19 disruptions, Korea signed the Regional Comprehensive Economic Partnership among 15 members. - The agreement was substantially concluded before the pandemic but signed after one-year negotiations on technical issues to close gaps; the signing was conducted virtually. - Specific supply-chain impact example: - Hyundai could not import wiring harnesses from China during early COVID-19 disruptions. - 95 percent of those wiring harnesses came from China; Hyundai suspended production in Ulsan because of shortages. - Later, Hyundai sourced harnesses from Cambodia and Korea started FTA negotiations with Cambodia that year. ### Risks of economic fragmentation and Korea’s vulnerability - Observed trend: increasing politicization of economic and trade issues and conflation of trade policy with national security. - Manifestations include supply chain reconfiguration; onshoring, reshoring, or friend-shoring; resurgence of industrial policy and massive subsidies; export controls; and investment screening. - Potential consequences noted (citing the IMF’s World Economic Outlook as referenced by Yoo): - Increased cost of doing business. - Limited access to global markets. - Added uncertainty to trade. - Higher risk of protectionism and disputes. - Korea’s response: - Efforts to enhance resilience, including supporting industrial and technological competitiveness in critical sectors and diversification. - Active pursuit of strengthened international cooperation through bilateral, plurilateral, and multilateral arrangements. - Yoo’s stance: improving supply chain resilience does not have to mean turning away from economic openness; balance between efficiency, resilience, and security is essential. - Uncertainty remains about the extent of future fragmentation; challenges ahead described as significant. ### Key takeaways for policymakers and negotiators - Prioritize thorough substantive analysis and extensive domestic consultation to identify landing zones and secure ratification. - Engage directly with protesting or skeptical domestic stakeholders to build understanding and support. - Foster international cooperation as a means to enhance supply chain resilience without abandoning openness. - Prepare for a security-oriented trade environment and design policies that balance efficiency, resilience, and security. *Interview with Yoo Myung-hee, F&D Magazine, June 2023.* --- ## Content in this bundle - **Policymaker and Negotiator: Trenches profile of Yoo Myung-hee** - [Policymaker and Negotiator: Trenches profile of Yoo Myung-hee (Markdown version)](/-/media/files/publications/fandd/article/2023/june/trenches-june23.pdf.md){rel="alternate" type="text/markdown"} - [Policymaker and Negotiator: Trenches profile of Yoo Myung-hee (PDF)](/-/media/files/publications/fandd/article/2023/june/trenches-june23.pdf){rel="external" type="application/pdf"} --- _Source: https://www.imf.org/en/publications/fandd/issues/2023/06/trenches-policymaker-and-negotiator-yoo-myung-hee_